Dear Friends,

I trust this message finds you in good health and spirits as we usher in the new year. Wishing all of you a Very Happy 2024!

As we move into 2024, it is important to reflect on how Indian Auto Retail performed during the last Calendar Year. I am pleased to share that the entire Calendar Year'23 demonstrated significant growth, with an overall increase of 11% YoY. Growth was recorded across all segments: 2W grew by 9.5%, 3W by 58.5%, PV by 11%, Tractors by 7%, and CV by 8%.

Looking at the global automotive landscape, the industry has demonstrated resilience and adaptability, particularly in emerging areas such as electric vehicles and autonomous technologies. While the global market is navigating through challenges like supply chain disruptions and shifting consumer preferences, it's heartening to see India not just keeping pace but also carving a niche in areas like cost-effective manufacturing and innovative mobility solutions.

This global perspective is crucial as India, poised to become the world's 3rd largest economy, embarks on its journey towards a $5 trillion economy. The Indian auto sector, a key driver of economic growth, is expected to play a pivotal role in this transformation. The EY report's projection of India reaching a $26 trillion economy by 2047, marking the 100th year of our independence, is a testament to our potential. With a projected increase in per capita income to $15,000, aligning us with developed economies, the Auto Industry's role and especially us, the Auto Dealers who will sell these vehicles in shaping a prosperous and sustainable future for India becomes even more significant.

In our ongoing efforts to empower and support the automobile dealership community, FADA recently hosted its first Townhall Meeting of 2024 in Hyderabad, bringing together Dealer Principals from across Telangana, thanks to State Chairperson Mr. M Suresh Reddy. We also had a productive meeting with the Principal Secretary, Transport Shri K. S. Sreenivasa Raju, IAS, where we discussed the implementation of the Vahan platform in the State. The Principal Secretary expressed his willingness to implement Vahan as soon as possible. Additionally, the State plans to engage with all relevant stakeholders to expedite the implementation of the new Central Motor Vehicles (CMV) Rules.

The success and positive sentiment generated from this event have inspired us to extend this initiative nationwide, starting with at least two Townhalls in each zone every quarter across tier 2/tier 3 cities. The next two Townhalls are planned in March, in Jammu and Srinagar, which will cover the entire Jammu & Kashmir region. This will be FADA’s first engagement in these UTs. Along with the Srinagar Townhall, we also plan to hold a Past President’s meeting so that we can understand from the earlier torch bearers how FADA can further benefit all the Auto Dealers in the country.

Our commitment to facilitating collaboration and addressing industry challenges was further exemplified through various vertical meetings, including those with GenX & WIF members and a ground-breaking virtual meeting with prominent Tractor Dealers to establish a unified strategy. The tractor meeting helped us understand the pain areas of tractor dealers. We intend to discuss all these issues by organizing the 1st Tractor Conclave sometime in April.

FADA is dedicated to representing all facets of the automobile dealership community and to this end, we have formed a Member Benefit Committee. This committee, comprised of voluntary Governing Council Members, is actively working on maximizing benefits for FADA members through strategic alliances with banks, insurance companies, airlines, hotels, and more. While all our members will benefit from such tie-ups, I am sure that our members, especially from Tier 3 towns and rural areas, will be most excited to avail themselves of such benefits!

Looking ahead, FADA State Chapters, including Maharashtra, Delhi, and Far Eastern States, are gearing up for Vyapar Events, fostering a stronger bond among dealerships and promoting the sharing of best practices in the months of February and March. I assure you that we will have a busy schedule ahead!

We are excited to announce our participation in the 1st Bharat Mobility Global Expo 2024 in New Delhi from Feb 1-Feb 3. Similar to Auto Expo’s, FADA here also plans to set up a lounge for dealer friends attending the event, thus providing them a space for rest and chit-chat with co-dealers.

FADA is actively finalizing arrangements for its delegation's participation in the upcoming National Automobile Dealers Association (NADA) Show. This significant event, held in Las Vegas, presents an unparalleled platform for international engagement and knowledge exchange. This year's delegation, comprising 26 members, will arrive in Las Vegas on January 30th. Prior to the NADA Show, scheduled from February 1st to 4th, the delegation will undertake visits to two prominent Automobile Dealerships, enhancing their experience and understanding of the industry.

The NADA Show is widely regarded as the pinnacle event for Automobile Retail, offering a comprehensive learning environment. Participants gain insights into various critical areas, such as Business Essentials and Innovations, Fixed Operations, Human Resources, Leadership, Marketing and Digital Strategies and Variable Operations. This year's event is particularly noteworthy, featuring over 90 workshops, 24 exchange sessions, and 2 Super Sessions. These sessions are designed to provide our delegation with a wealth of knowledge and best practices. Implementing these learnings within our operations promises to maintain our competitive edge and drive forward-thinking strategies in the automobile retail sector.

In our pursuit to ensure the Model Dealer Agreement (MDA) is widely adopted, we are planning follow-up meetings with various OEMs.

On a crucial note, FADA has taken legal action for the early implementation of the MoRTH Notified Rules. We have approached the High Court of Madras & Puducherry and our case has been accepted as a PIL. The date for the listing of our case is awaited. Once these rules are implemented, customers and businesses in the State stand to benefit significantly.

In light of recent developments, the Indian consumer sentiment, as indicated by the CMIE Index of Consumer Sentiments for December 2023, has shown a remarkable rebound, reaching levels unseen since before the national lockdown in March 2020. This index has now eclipsed the figures last observed in February 2020, just a month prior to the government's imposition of the lockdown aimed at containing the Covid-19 pandemic. With this resurgence in consumer confidence, the forecast for CY'24 is decidedly optimistic. Each sector within the auto retail industry is positioned for growth, navigating through the dynamic market conditions. Nonetheless, the pivotal role of meticulous supply and inventory management cannot be overstated. These elements will be key in fully leveraging the positive trends that the new Calendar Year promises!

I hence urge you to stay engaged and actively participate in the upcoming events and initiatives. Your continued support is invaluable to us.

Thank you for being an integral part of FADA.

Best Regards,

Manish Raj Singhania
President- FADA